The Market Brief
Hey team. U.S. futures edged lower during early trading on Monday with investors cooling on equities after a five-day winning streak.
Let’s see what’s ahead for this market!
Macro Viewpoint
U.S. stock index futures slipped on Monday, while Treasury yields moved higher following a downgrade of the nation’s sovereign credit rating by Moody’s.
The move, which lowered the rating by one notch, has amplified existing concerns over the country’s growing debt burden.
The downgrade adds weight to Wall Street’s increasing unease surrounding the U.S. sovereign bond market, especially as the widening budget deficit shows few signs of reversing course.
The jump in positioning this week was one of the biggest on record.
The S&P 500 wrapped up last week on a positive note, marking its fifth consecutive day of gains. Investors had responded favorably to a temporary pause in U.S.-China trade tensions and softer-than-expected inflation figures.
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